Kandle Company Paid a Dividend of $4

question 21

Multiple Choice

Kandle Company paid a dividend of $4.76 per share this year and plans to pay a dividend of $5 per share next year, which is expected to increase by 3 percent per year subsequently. The requiredrate of return is 15 percent. The value of Kandle stock, according to the dividend discount model, is $____.

• A) 39.67
• B) 41.67
• C) 33.33
• D) 31.73
• E) none of the above

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